Tesla Raising $5 Billion in Share Offering

Investor finances have driven Tesla’s growth over the last decade, prompting its namesake to become synonymous with other automotive manufacturers like GMC & Honda. Between September & December of 2020, Tesla’s acquisition of investor funds has grown tenfold. CEO Elon Musk has sustained two funding rounds for obtaining financial aid. The second was announced on December 8th, with funding round goals listed at $5 Billion. It marks the highest funding round in corporate history for Tesla.

Tesla filed the necessary paperwork for America’s Security & Exchange Commission, where reports indicated that shares wouldn’t be overvalued. It means investors obtain shares valued at standard market prices. Clarification from CEO Elon Musk noted that the $5 Billion funding round doesn’t account for 1% of Tesla’s market capitalization, which was updated earlier this year at $598 Billion.

Implementing this strategic plan sustains prominence for Tesla, with the corporate division announcing GigaFactories are being constructed in Germany & Texas. Global expansion for Tesla begins in 2021, with an annual spending limit of $2.5 Billion initiated for the next two years. CEO Elon Musk noted that older factories are receiving renovations and innovative new technologies for battery-cell manufacturing. Implementing two years of expansion strategies prompted the operating expenses of Tesla to increase by 33% in 2020. Since January 2020, $1.25 Billion in spending has been initiated.

Equity Distribution Agreements for Tesla

The Tesla Company reached peak values for their shares & stocks on December 7th. An announcement regarding their immediate expansion followed, prompting market analysts to predict stake valued dropping by 1.1% on December 8th. Continued declines aren’t expected, with Tesla’s anticipated recovery following by the 9th or 10th. It should be noted that Tesla shares increased by 670% in 2020, the highest percentage of any corporation in America.

Growth of share values was prompted after the Tesla Company & Goldman Sachs/Citigroup Global Markets partnered together to initiate equity distribution. Profit margins for these wall street firms will increase in Q4 from this partnership agreement. Every investor acquired by either Goldman Sachs or Citigroup Global Markets will permit a 0.25% commission.